Cornered Dragon: China May Strike U.S. as Middle East Proxy Crumbles

EDITOR'S NOTES

The following article analyzes how China’s global ambitions may be upended by escalating conflict in the Middle East. Drawing from the warnings of Gordon Chang and beyond, it explores the fallout of Israel’s military campaign against Iran—and what Beijing may do in response. As always, readers are encouraged to consider the broader implications for global financial systems, energy markets, and the risk of retaliatory cyber or kinetic warfare. This is about more than geopolitics—it’s about your future prosperity and safety.

Eric Blair Jun 17, 25

While the media focuses on missiles and soundbites, a far more dangerous undercurrent is building beneath the surface. China, wounded and cornered by the unraveling of its Middle East strategy, may soon lash out—and America could be the target. The recent Israeli strikes on Iran didn’t just damage nuclear sites; they set fire to Beijing’s foreign policy scaffolding, built meticulously through proxy alliances, oil dependency, and military technology pipelines.

Gordon Chang, a senior fellow at the Gatestone Institute and long-time China watcher, didn’t mince words on this: “The Chinese… they're losing their proxy, Iran.” For years, Iran functioned as Beijing’s geopolitical glove-puppet in the Middle East—keeping U.S. influence at bay, drawing American resources into endless entanglements, and exporting chaos that conveniently distracted Washington. That model is now collapsing, and China isn’t going to take the loss quietly.

The War That Threatens to Unmask China's Strategy

Last week, Israel launched a sweeping aerial assault dubbed Operation Rising Lion, targeting Iranian missile and nuclear infrastructure. Explosions echoed through Tehran as emergency sirens wailed across Israel in anticipation of retaliation. But this isn’t just about two nations trading blows. The real signal is to China—and it’s flashing red.

Beijing’s support for Iran has been anything but subtle. Over 90% of Iran’s crude oil exports head straight to China. Chinese firms have quietly armed Iran’s network of terror affiliates—Hamas, Hezbollah, the Houthis—with weapons and hardware infused with Chinese microchips. These aren't just client-state arrangements; they are tentacles in a global strategy of asymmetric disruption.

Now that network is collapsing. Iran is bleeding, and Chinese power projection in the region is in retreat.

Desperation Breeds Recklessness

“China is suffering a terrible loss in the Middle East,” Chang warned. “It’s probably going to get Iran or some other party to strike us.”

Think about that. Beijing—already under immense internal strain from economic stagnation, a collapsing real estate sector, and growing civil unrest—may now attempt to redirect global attention through a proxy strike against the U.S. or its allies. This isn’t far-fetched speculation. Historically, empires in decline often escalate abroad to suppress turmoil at home.

Add to this the speculation that Xi Jinping has lost partial control of his own military apparatus, and we are staring into the abyss. Whether the next move is a cyberattack on critical infrastructure, a financial warfare campaign, or something more overt, the time to prepare is now.

The Energy Shock and Financial Fallout

Oil prices are already surging. Markets are roiling. A regional war involving Israel and Iran will not stay regional—especially with Chinese stakes this high. Supply chains will shatter. Currencies will wobble. And if Beijing retaliates through asymmetric means—cyber strikes, economic blackmail, or further destabilization in the Pacific—the American consumer will be the one paying the price.

This is why Bill Brocius, the author of End of Banking As You Know It, has been warning about systemic fragility for years. The same elite planners who told us the banking system was “safe and sound” in 2008 are now assuring us that this geopolitical unraveling won’t touch our shores. Don’t believe it for a second.

Final Thoughts: This Is Not a Drill

Iran is on the ropes. China is cornered. The fuse is lit—and Americans are sitting atop a powder keg of financial and military consequences. You don’t need to be a war strategist to understand what’s coming. You just need to prepare.

If you’re still storing all your wealth in fiat currency and trusting that Washington will handle this chaos, you’re gambling your future. Tangible assets—gold, silver, crypto—offer real insulation from the next wave of systemic shocks.

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